Hi,

I'm looking into a parcel of land zoned for 4. I'm thinking of building 4 side-by-sides. Have never done this before and wondering wha the steps are? Approximate cost? Could it be done for $600K or less? Do I contact a builder like "Jayman" or is there different builders that specialize in smaller jobs like this?

Thank you!

You need permits. To get permits you need drawings and engineering work done. Start there.

Then find a builder ( also called a GC, general contractor) that can build and manage material and sub-trades. They would charge about 15-20% of construction cost.

You also need financing. Most banks would lend you 70-75% of cost incl land.

Start with architectural drawings and detailed cost to build. Then take this to the bank.

You also need to be able to sell the units.

All doable. Second time around is much easier. Steep learning curve.

Cost to build is anywhere from 80-300 $s a sq ft depending on soil, basement, quality etc.

Thanks Thomas.

What do you think would be a rough estimate of something like this?

Basically, the plan would be for my wife and I to "buy one", my parents to buy another, my sister and her husband to buy the third and the fourth to be maybe a rental....

Estimate for drawings ? Around 15-25,000 I'd say for a fourplex.

Good to have an experienced GC on board while designing as sometimes architects design nifty things that are impractical i.e. expensive.

Where are you located?

I'm in Calgary.

So I'm guessing this is highly risky? If we spend $20K on drawings and the bank says no, that's it? We lose the $20K?

You gain $20,000 worth of knowledge !

Development is far more risky than buying existing as there are far more unknowns, but it is also far more interesting, far more profitable (when done well / on plan / on budget ) and far more creative.

You create what does not yet exist ! That is how the world is changed.

Buying existing is easier and more boring, but can be levered more easily with cheaper money and thus has a better reward to risk ratio.

I do both now.

Of course you need to be reasonably assured that you will buy the land and get money to finance it before you spend a nickel on design. But you can never be 100% sure. Risk and reward are related.

Path to success: Dreaming - planning - ACTION !

Have no fear !

False
Evidence
Appearing
Real

P.S.: Most folks fail at planning or fail to act, btw. It is 1% inspiration and 99% perspiration !

The $600,000 mark- is that including the land price? Or just the buildings? Rough start would be $200 a sft (it can be less, or more depending on variables but from what I've been told it's a safe estimating number)

The end price tag is dictated largely by what size, style and finishes you choose. It would also be how much it costs to bring the services in.

I haven't built yet, my brother owns a building company (red deer) so I get my estimated numbers for the houses from him- and call companies that do servicing or the city or ask here.... But it will all depend on the land and where you have to bring them from. You can get that information from the city- if you call and say you are thinking of buying and you need to know where the current services are.:. What would be involved etc.

It all starts with a lot of questions and digging for the answers.

Thomas is 100% right in the dreaming, planning, action ... And the risks/rewards.

I think $200/sq ft is too high for a 4-plex, assuming each unit is somewhat similar, and further assuming no super high end kitchens / bathrooms, as one could spend $200,000 on a kitchen alone if one wants. I'd budget $120-150/sq ft, plus soft costs, i.e. financing costs, drawings, permits, engineering .. plus land. A stand alone house indeed is $200+ easy !

True Thomas

I think when I was asking about the 4plex he (my brother) did last time (6 years ago) actual cost was $70 a sft! Lol but that was actual cost not mark up. When I asked him for single family he said $200 was above what it would actually cost unless high end finishes and design were done- and that $150 would be more likely.

I like my numbers to be extra generous on the "cost" side- so that if the numbers work there... The upside is even more lucrative. I call it Courtney Math... lol my accountant husband thinks it's hilarious ... But he doesnt question it when the check comes in higher than expected[emoji16]

$120-150 would be closer to reality.

When you say 4PLEX, would that be similar to 4 side-by-sides. I'm thinking basically 4 attached townhouses.

For SQ Ft price, does that mean total square feet of the main and second floors?

In terms of pricing, the $600K was for just the properties but that's about $150K per "townhouse"

The land is about $400K or less...

^ I think you need a lot more knowledge to be successful at this.

Talking in $/SF numbers cost or market price before having drawings is putting the cart a mile before the horse.

Infill development is a lot more complicated and expensive than greenfield. You need 50% cash for the land portion. You will need to rezone (add 3 to 6 months to your timeline unless you are building with an overlay with MNO allowing subdivision*)

Architecture drawings probably $15,000.

If I were to attack this project I would:

*MNO = mature neighbourhood overlay....if this is all Greek to you, you are not ready to take on redevelopment, infill, or rezoning!